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Budgeting and saving money as a student

Money at university can be a bit of a rollercoaster. One minute your student finance payment has landed and you feel like you can finally breathe; a few weeks later you’re checking your bank balance before buying a meal deal.

The good news? You don’t need to be a maths genius or have a spreadsheet with 47 different tabs to get better at managing your money.

A budget is simply a plan for your money. It helps you work out what you need to spend, what you’d like to spend, and what you can put aside for later. And importantly, budgeting doesn’t mean you can’t have fun. It’s about making sure you can afford the things you enjoy without running out of money before the end of term.

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Step 1: Work out what you’ve actually got

Before you start cutting back on everything, take a realistic look at your income.

This could include:

Student finance or maintenance funding
Wages from a part-time job
Bursaries, scholarships or grants
Regular support from family
Savings you’re planning to use during the year

Then look at your spending. Start with the things you have to pay for:

Rent or accommodation
Food and groceries
Household bills
Phone and internet
Travel
Course materials

Then think about the things you choose to spend money on:

Eating out and takeaways
Nights out
Clothes and shopping
Subscriptions
Hobbies
Days out and trips

Don’t worry if the numbers aren’t perfect at first. The aim is to get a realistic picture of where your money is going.

Top tip: Check your bank statements or banking app rather than trying to remember what you’ve spent. Your memory may conveniently forget the £4.50 coffees.

Step 2: Turn it into a budget

Once you know your income and regular expenses, work out what’s left.

For example:

Money coming in: £1,500

Essential costs: £1,050

Leftover: £450

That £450 isn’t necessarily £450 of “spending money”. You might want to divide it between things like food shopping, socialising, clothes, travel, savings and unexpected costs.

You can make this as simple or detailed as you like. A weekly budget can be particularly useful if you’re finding it difficult to keep track of your spending.

Your student finance usually arrives in larger payments, remember that the money needs to last until your next payment. It can help to work out the amount available for each week or month rather than treating the whole payment as spendable at once.

Step 3: Give yourself some breathing room

A budget that leaves absolutely no room for anything enjoyable is probably not going to last.

If you know you like going out with friends, buying coffees or ordering the occasional takeaway, give yourself some money for those things. The exact amount will depend on your circumstances.

The point is to make your budget realistic.

It can also help to have a small amount set aside for unexpected costs — for example, replacing something you’ve lost or paying for an unexpected journey.

Even if you can only put a small amount aside, getting into the habit of saving can make unexpected expenses less stressful.

Step 4: Make your budget easy to stick to

Knowing what you should spend is one thing. Actually sticking to it is another.

Here are some things that can help:

If you’ve worked out that you have £280 available for flexible spending over four weeks, that’s roughly £70 a week.

You don’t have to spend exactly £70 every week, but having a number in mind makes it easier to notice when you’re starting to go over.

Pick a day and spend five minutes looking at your balance and recent spending.

Ask yourself:

What have I spent? What’s coming up? Am I still on track?

Five minutes now can save you from a very stressful final week of term.

Some banking apps let you divide money into different pots or categories. You could have one for bills, one for everyday spending and one for savings.

Just make sure you understand how your bank’s features work before moving money around.

For non-essential purchases, try giving yourself a little time before pressing “buy”.

Ask:

Do I actually need this?
Will I still want it tomorrow?
Is there a cheaper option?
Have I already spent my budget for this category?

You don’t have to say no to everything. Sometimes the answer will still be “yes” — and that’s fine.

You don’t need to turn into an extreme couponer to make a difference.

A few small habits can add up:

Plan your food shop.

Make a list before you go and try to stick to it. Cooking a few meals in bulk can also make life easier during busy weeks.

Compare prices.

Check different shops or use price-comparison tools before buying something expensive.

Use student discounts.

Always check whether a student discount is available before paying full price.

Share where it makes sense.

Splitting household items, subscriptions or occasional purchases with housemates can sometimes reduce the cost per person.

Buy second-hand.

Textbooks, furniture, clothes and other items can often be found second-hand rather than bought new.

Check your subscriptions.

If you haven’t used something for months, ask yourself whether it’s worth continuing to pay for it.

Don’t make every social plan expensive.

Going for a walk, cooking together, watching a film at home or finding free events can be just as good as spending £££.

If you don’t fancy building your own spreadsheet, there are plenty of tools that can help.

MoneyHelper Budget Planner

A free online tool from MoneyHelper that lets you enter your income and spending and see where your money is going.

Save the Student

A student-focused resource with budgeting guides, calculators, spreadsheets and lots of practical money-saving ideas.

Your banking app

Many banking apps can automatically categorise your spending and send notifications when you’re spending. Check what’s available with your own bank.

You can also ask your students’ union or university whether they have their own budgeting tools, money advice service or financial support.

First: don’t panic, and don’t ignore it.

If your income isn’t enough to cover your essential costs, simply telling yourself to “spend less” may not solve the problem.

Look at your budget and work out where the gap is.

Getting help early is much better than waiting until the situation becomes a crisis. Whilst they can’t provide advice on debt management, our SU Advice team are happy to discuss budgeting support and exploring additional financial support options with you.

There may be financial support available through the University Funding team or SU Advice also offers a short-term emergency loan.

You will probably go over budget sometimes. Everyone does.

The aim isn’t to make every pound behave perfectly. It’s to understand your money well enough that you can make informed choices, prepare for the unexpected and make your money last.

So start small. Work out what you’ve got coming in, see where it’s going, set yourself a realistic spending limit and check in with your budget regularly.

And remember: a budget should help you live your student life — not stop you from having one.